Stripe hires investment banks to explore IPO

The payment processing startup, one of the world's most valuable private companies, could go public next year, say people familiar with the subject.
SAN FRANCISCO - Stripe, San Francisco's payments provider and one of the world's most valuable private start-ups, has hired Goldman Sachs and JPMorgan Chase this week to advise it on a potential public listing next year, two people with knowledge of the matter said.
If a listing progresses, Stripe's public debut would be among the largest and most anticipated in its class of start-ups, potentially reopening moribund public markets to new offerings.
Stripe told employees on Thursday that it is considering multiple avenues for its shareholders to cash out within the next 12 months, the people said. Possible routes include a direct listing, in which the company would publicly list its shares but not issue new ones; a takeover bid, in which it would sell employee shares to outside investors but would not be made public; or a regular initial public offering, the people said.
Previously reported information about Stripe's projects.
The company, which sells payment processing software to companies such as Peloton, Wayfair and Amazon, postponed the operation of public markets. But its early investors, who are sitting on huge returns, and employees, some of whose shares will soon expire, are eager to enjoy the company's success.
Stripe has raised over $2 billion from investors including Sequoia Capital, General Catalyst, Founders Fund, Thrive Capital and Andreessen Horowitz.
Market watchers often view Stripe's performance as an indicator of the overall health of the startup market, as it began serving other startups before expanding to larger clients.
Like many tech companies, Stripe has spent the last year backing out of its overly optimistic growth plans in the face of a faltering economy. "We were far too optimistic about the near-term growth of the internet economy," Patrick Collison wrote in a message to employees announcing layoffs in November.

Technology Jan 30, 2023 0 62 Add to Reading List

Stripe hires investment banks to explore IPO

The payment processing startup, one of the world's most valuable private companies, could go public next year, say people familiar with the subject.

SAN FRANCISCO - Stripe, San Francisco's payments provider and one of the world's most valuable private start-ups, has hired Goldman Sachs and JPMorgan Chase this week to advise it on a potential public listing next year, two people with knowledge of the matter said.

If a listing progresses, Stripe's public debut would be among the largest and most anticipated in its class of start-ups, potentially reopening moribund public markets to new offerings.

Stripe told employees on Thursday that it is considering multiple avenues for its shareholders to cash out within the next 12 months, the people said. Possible routes include a direct listing, in which the company would publicly list its shares but not issue new ones; a takeover bid, in which it would sell employee shares to outside investors but would not be made public; or a regular initial public offering, the people said.

Previously reported information about Stripe's projects.

The company, which sells payment processing software to companies such as Peloton, Wayfair and Amazon, postponed the operation of public markets. But its early investors, who are sitting on huge returns, and employees, some of whose shares will soon expire, are eager to enjoy the company's success.

Stripe has raised over $2 billion from investors including Sequoia Capital, General Catalyst, Founders Fund, Thrive Capital and Andreessen Horowitz.

Market watchers often view Stripe's performance as an indicator of the overall health of the startup market, as it began serving other startups before expanding to larger clients.

Like many tech companies, Stripe has spent the last year backing out of its overly optimistic growth plans in the face of a faltering economy. "We were far too optimistic about the near-term growth of the internet economy," Patrick Collison wrote in a message to employees announcing layoffs in November.